Small Business Education and FinancingSmall Business (Micro) LoansLoan proceeds can be used to buy machinery, equipment, furniture, inventory, and supplies, and provide working capital. Real estate purchases, development or substantial improvements are not eligible. When loans are used to buy equipment or other fixed assets, checks will be written directly to the supplier. The only businesses automatically excluded are those engaged in gambling speculation, lending or investment, pyramid sales or floor planning.
The Small Business Administration (SBA) Intermediary Relending Program makes loans up to $35,000 for start-up or existing businesses USDA Rural Business Loans (IRP)The definition of IRP is Intermediary Relending Program. The purpose of the IRP program is to alleviate poverty and increase economic activity and employment in rural communities. Under the IRP program, loans are provided to local organizations such as CVC for the establishment of a revolving loan fund. The loan funds are used to assist with financing business and economic development activity to create or retain jobs in disadvantaged and remote communities throughout Kentucky.
The loans to a business may be used for the acquisition of real estate, purchase of equipment, renovation to real estate, and the purchase of rolling stock. These loans carry a low interest rate and are usually below Bank interest rates. The loans have a repayment term of up to 10 years. Loan amounts range from $35,000 to $150,000. for designated counties throughout KY.
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